Council hears preliminary 2027 budget showing near 20% levy increase; directs staff to target 9%

City finance staff presented a preliminary 2027 budget on July 14 that would raise the city’s tax levy by $298,064, or roughly 19.5%, over the current year. The proposal includes wage increases (a 3% cost-of-living adjustment plus step increases), higher workers’ compensation and liability insurance, and a $77,000 pool repairs allocation, along with increases across several levies including the general, library and EDA levies.

“Everything that they wanted is in this budget,” the presenter said, noting the draft includes all department requests so councilors can trim it before certification. He said the proposed increase would add roughly $102 to the city portion of taxes on a $100,000 house under the levy as presented.

Council members voiced concern about the scale of the proposed jump. Several members said employee pay and police staffing deserved priority, while others urged restraint to limit the burden on taxpayers. One councilor noted, “there’s no way I could okay this at this rate,” urging staff to reduce spending and offering to push back on specific new positions and line items.

After discussion the council gave staff direction to work toward a preliminary levy increase of 9% and requested more detail on the largest line items, including contracted services, ABDO invoices, and the proposed pool repair scope. Staff agreed to provide a breakdown of outside and contracted services and to meet department heads to trim requests, then present an updated draft at an August work session before certifying the preliminary levy.

The council emphasized that the preliminary levy can be lowered later but not increased, and that the schedule calls for approval of a preliminary levy in September. The budget presentation also flagged about $233,000 in bond payments due this month and noted the city did not receive an $82,000 housing grant application.